Generated improved results from Service business as anticipated due to
the strategic hiring of field service technicians in the second half
of 2017.

Financial Summary

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Revenues

$

115,110

$

104,784

$

58,503

Income from operations

$

35,217

$

28,737

$

9,994

Operating income margin

30.6

%

27.4

%

17.1

%

Net income

$

26,408

$

22,814

$

4,854

Adjusted EBITDA (1)

$

42,672

$

35,032

$

15,307

Adjusted EBITDA margin (2)

37.1

%

33.4

%

26.2

%

(1)

Adjusted EBITDA is a non-GAAP financial measure. See definition of
Adjusted EBITDA and the reconciliation of GAAP to Non-GAAP financial
measures in the Supplemental Information tables.

(2)

The percentage of Adjusted EBITDA to Revenues.

(3)

See definition and calculation of market share in the Supplemental
Information tables.

Scott Bender, President and CEO of Cactus, commented, “I am pleased with
our results for the first quarter, which demonstrate momentum in our
product, rental and service offerings. We successfully grew revenues,
improved margins and generated strong cash flows for the quarter. The
strategic decisions we made during the second half of 2017 positioned us
for a strong start in 2018. Customers continue to recognize our
differentiated service offering and the efficiencies and reliability we
deliver.”

Mr. Bender continued, “We decided to accelerate our capital expenditure
program in the first quarter of 2018 as we noted increasing demand in
our frac rental business. The timely production of these assets enhanced
our first quarter results and positioned us for the rest of 2018. We
continue to evaluate this market and the need for additional rental
equipment.

“I am optimistic about the balance of 2018, with activity supported by
current oil prices and from the continued expansion of our Rental
business,” concluded Mr. Bender.

Revenue Categories

Product

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Product revenue

$

58,926

$

57,128

$

33,038

Gross profit

$

21,860

$

19,662

$

9,843

Gross margin

37.1

%

34.4

%

29.8

%

First quarter 2018 product revenue increased $1.8 million, or 3.1%,
sequentially, driven primarily by greater sales volume of wellhead
equipment during the first quarter. Gross profit increased $2.2 million
sequentially with margins improving 270 basis points due to increased
sourcing of product from Suzhou as well as improved manufacturing
efficiencies. Cactus’ estimated market share was 26.4% for first quarter
2018 compared to 26.0% for fourth quarter 2017, while the U.S. onshore
quarterly rig count averaged 948 rigs in first quarter 2018 compared to
900 rigs in fourth quarter 2017.

Rental

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Rental revenue

$

29,145

$

24,490

$

12,975

Gross profit

$

16,969

$

12,144

$

4,702

Gross margin

58.2

%

49.6

%

36.2

%

First quarter 2018 rental revenue increased $4.7 million, or 19.0%,
sequentially, due to higher demand for frac valves and zipper manifolds,
reflecting greater completions activity across the major U.S. basins in
which the Company operates, as well as an increase in Cactus’ rental
fleet arising from acceleration of its 2018 capital expenditure program
during first quarter 2018. Gross profit increased $4.8 million
sequentially with margins improving 860 basis points resulting from a
combination of capacity additions, greater operating efficiencies and
price.

Field Service and Other

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Field service and other revenue

$

27,039

$

23,166

$

12,490

Gross profit

$

5,502

$

3,575

$

1,552

Gross margin

20.3

%

15.4

%

12.4

%

First quarter 2018 field service and other revenue increased $3.9
million, or 16.7%, sequentially, due to increased billable hours related
to installations. A higher percentage of the increase in hours related
to frac service work, which requires greater service intensity. Gross
profit increased $1.9 million sequentially with margins increasing 490
basis points due to improvement in billable hours compared to the fourth
quarter when seasonal impacts and greater training hours compressed
margins.

Selling, General and Administrative Expenses (“SG&A”)

SG&A for first quarter 2018 was $9.1 million (7.9% of revenues),
compared to $6.6 million (6.3% of revenues) for fourth quarter 2017 and
$6.1 million (10.4% of revenues) for first quarter 2017. The sequential
increase is primarily related to $0.8 million of non-cash stock-based
compensation expense related to the Company’s IPO as well as a
combination of higher payroll, benefit and incentive compensation costs.

Supplemental Information

If the Company’s GAAP Diluted EPS of $0.14 were adjusted for the
following items, it would have been $0.34 for first quarter 2018: (i)
the removal of interest expense on the term loan that was repaid in
conjunction with the IPO; (ii) the removal of the loss on debt
extinguishment related to the repayment of the term loan in conjunction
with the IPO; (iii) additional stock-based compensation expense related
to the period in 2018 prior to the IPO; and (iv) an adjustment to income
tax expense to reflect the corporate effective tax rate assuming Cactus,
Inc. held all units in Cactus LLC. The Company believes this
supplemental information is useful for evaluating performance period
over period. The table below sets forth additional detail regarding the
adjustments.

Three Months Ended

March 31, 2018

(in thousands,except per share data)

Net income

$

26,408

Adjustments:

Term loan interest, pre-tax (a)

2,284

Loss on debt extinguishment, pre-tax (b)

4,305

Stock-based compensation, pre-tax (c)

(417

)

Income tax expense differential (d)

(6,735

)

Net income, as adjusted

$

25,845

Diluted earnings per share, as adjusted

$

0.34

Weighted average shares outstanding, as adjusted (e)

75,096

(a)

Reflects the removal of the term loan interest expense recorded
during first quarter 2018 as the term loan was repaid in full in
conjunction with the IPO.

(b)

Reflects the removal of the loss on debt extinguishment recorded in
first quarter 2018 in conjunction with the IPO related to the
write-off of the unamortized balance of deferred financing costs and
original issue discount.

(c)

Represents the additional stock-based compensation expense that
would have been recorded assuming the restricted stock unit awards
were issued as of January 1, 2018.

(d)

Represents the increase in tax expense as though Cactus, Inc.
owned 100% of Cactus LLC beginning January 1, 2018, calculated as
the difference in tax expense of $1.7 million recorded during
first quarter 2018 and what would have been recorded, adjusted for
the items in (a), (b) and (c) above, based on a corporate
effective tax rate of 24.5%.

(e)

Reflects 26,450 shares of Class A common stock as though they were
outstanding as of January 1, 2018, plus 48,440 additional shares as
if the Class B common stock was exchanged and canceled for Class A
common stock on January 1, 2018, plus the dilutive effect of
restricted stock unit awards assuming issuance on January 1, 2018.

Liquidity and Capital Expenditures

As of March 31, 2018, the Company had cash on hand of $7.9 million and
no bank debt outstanding, resulting in total availability of $50.0
million under the Company’s revolving credit facility. In conjunction
with the Company’s IPO, the outstanding term loan was repaid in full in
February 2018. Operating cash flow was $38.6 million for first quarter
2018, generated from strong operating results and improvements in
working capital intensity.

Net capital expenditures for first quarter 2018 were $15.7 million. The
majority of the spend related to the acceleration of production of
rental equipment, particularly frac valves, as customer demand for
higher intensity frac equipment continued to increase. The Company
currently expects total capital expenditures for 2018 to range between
$50 million and $60 million.

Cactus, Inc. IPO

On February 12, 2018, Cactus closed its initial public offering (“IPO”)
of Class A common stock. Including the exercise in full of the
underwriters’ option to purchase an additional 15% of common shares, the
Company issued a total of 26,450,000 shares of Class A common stock in
the IPO at $19.00 per share, resulting in net proceeds of $469.6 million
after deducting underwriting discounts and commissions and current
offering expenses, but not deducting $2.2 million in offering expenses
paid by Cactus in 2017. Cactus contributed all the net proceeds of the
IPO to Cactus Wellhead, LLC, its limited liability company operating
subsidiary (“Cactus LLC”), in exchange for common units representing
limited liability company interests in Cactus LLC (“CW Units”).

The Company caused Cactus LLC to use the net proceeds to (i) fully repay
its outstanding term loan facility, plus accrued interest, of $251.0
million and (ii) distribute $216.4 million to certain of the legacy
owners of Cactus LLC as part of the corporate reorganization undertaken
in connection with the IPO. The remaining $2.2 million was held in cash.
In addition, Cactus issued shares of its Class B common stock to each of
the legacy owners who continued to own CW Units following the IPO.
Following the IPO, there are 48,439,772 shares of Class B common stock
issued and outstanding, which have no economic rights but entitles its
holders to one vote on all matters to be voted on by the Company’s
shareholders generally.

In connection with the IPO, the Company entered into a tax receivable
agreement (the “TRA”) with certain direct and indirect owners of CW
Units (the “TRA Holders”). The TRA generally provides for the payment by
Cactus to the TRA Holders of 85% of the net cash savings, if any, in
U.S. federal, state and local income tax or franchise tax that Cactus
actually realizes or is deemed to realize in certain circumstances.
Cactus will retain the benefit of the remaining 15% of these net cash
savings. As of March 31, 2018, the Company recorded a liability of $63.0
million associated with the TRA as a result of the IPO.

In January 2018, Cactus made a $26.0 million tax distribution payment to
legacy owners of Cactus LLC related to the tax liabilities incurred
prior to the IPO. The payment was funded through the borrowing of $26.0
million under the Company’s revolving credit facility, which was repaid
as of March 31, 2018.

The call will be webcast on Cactus’ website at www.CactusWHD.com.
Institutional investors and analysts may participate by dialing (800)
263-0877. International parties may dial (323) 794-2094. The access code
is 7937430. Please access the webcast or dial in for the call at least
10 minutes ahead of start time to ensure a proper connection.

An archived webcast of the conference call will be available on the
Company’s website shortly after the end of the call.

About Cactus

Cactus designs, manufactures, sells and rents a range of highly
engineered wellhead and pressure control equipment. Its products are
sold and rented principally for onshore unconventional oil and gas wells
and are utilized during the drilling, completion (including fracturing)
and production phases of its customers' wells. In addition, it provides
field services for all its products and rental items to assist with the
installation, maintenance and handling of the wellhead and pressure
control equipment. Cactus operates 14 service centers in the United
States, which are strategically located in the key oil and gas producing
regions, including the Permian, SCOOP/STACK, Marcellus, Utica, Eagle
Ford and Bakken, among other areas, and one service center in Eastern
Australia.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks, uncertainties and other factors, many
of which are outside of Cactus’ control, that could cause actual results
to differ materially from the results discussed in the forward-looking
statements.

Forward-looking statements can be identified by the use of
forward-looking terminology including “may,” “believe,” “expect,”
“intend,” “anticipate,” “estimate,” “continue,” or other similar words
and include the Company’s expectation of future performance contained
herein. These statements discuss future expectations, contain
projections of results of operations or of financial condition, or state
other “forward-looking” information.You are cautioned not to
place undue reliance on any forward-looking statements, which can be
affected by assumptions used or by known risks or uncertainties.
Consequently, no forward-looking statements can be guaranteed.When
considering these forward-looking statements, you should keep in mind
the risk factors and other factors noted in the Company’s Annual Report
on Form 10-K and any Quarterly Reports on Form 10-Q. The risk factors
and other factors noted therein could cause actual results to differ
materially from those contained in any forward-looking statement.

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

Three Months Ended March 31,

2018

2017

(in thousands, except per share data)

Revenues

Product revenue

$

58,926

$

33,038

Rental revenue

29,145

12,975

Field service and other revenue

27,039

12,490

Total revenues

115,110

58,503

Costs and expenses

Cost of product revenue

37,066

23,195

Cost of rental revenue

12,176

8,273

Cost of field service and other revenue

21,537

10,938

Selling, general and administrative expenses

9,114

6,103

Total costs and expenses

79,893

48,509

Income from operations

35,217

9,994

Interest expense, net

(2,852

)

(4,986

)

Other income (expense), net

(4,305

)

-

Income before income taxes

28,060

5,008

Income tax expense (a)

1,652

154

Net income

$

26,408

$

4,854

Pre-IPO net income

$

13,648

$

4,854

Post-IPO net income

$

12,760

$

-

Components of Post-IPO Net Income:

Net income attributable to non-controlling interest

$

9,007

n/a

Net income attributable to Cactus Inc.

$

3,753

n/a

Earnings per Class A share - basic

$

0.14

n/a

Earnings per Class A share - diluted (b)

$

0.14

n/a

Weighted average shares outstanding - basic

26,450

n/a

Weighted average shares outstanding - diluted (b)

26,648

n/a

(a)

Cactus has historically not been subject to U.S. federal income tax
at an entity level. Subsequent to the IPO, Cactus, Inc. will incur
federal and state income tax on its share of income from Cactus LLC.

(b)

Dilution excludes 48.4 million shares of Class B common stock as the
effect would be anti-dilutive.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

March 31,

December 31,

2018

2017

(in thousands)

Assets

Current assets

Cash and cash equivalents

$

7,860

$

7,574

Accounts receivable, net

84,800

84,173

Inventories

69,533

64,450

Prepaid expenses and other current assets

5,563

7,732

Total current assets

167,756

163,929

Property and equipment, net

109,492

94,654

Goodwill

7,824

7,824

Deferred tax asset, net

73,215

-

Other noncurrent assets

48

49

Total assets

$

358,335

$

266,456

Liabilities and Equity

Current liabilities

Accounts payable

$

38,575

$

35,080

Accrued expenses and other current liabilities

14,584

10,559

Capital lease obligations, current portion

5,578

4,667

Current maturities of long-term debt

-

2,568

Total current liabilities

58,737

52,874

Capital lease obligations, net of current portion

8,809

7,946

Deferred tax liability, net

489

416

Liability related to tax receivable agreement

62,989

-

Long-term debt, net

-

241,437

Total liabilities

131,024

302,673

Equity (deficit)

227,311

(36,217

)

Total liabilities and equity

$

358,335

$

266,456

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Three Months Ended March 31,

2018

2017

(in thousands)

Cash flows from operating activities

Net income

$

26,408

$

4,854

Reconciliation of net income to net cash provided by operating
activities

Depreciation and amortization

6,621

5,313

Debt discount and deferred loan cost amortization

219

438

Stock-based compensation

834

-

Inventory obsolescence

451

-

Loss on disposal of assets

29

235

Deferred income taxes

963

29

Loss on debt extinguishment

4,305

-

Changes in operating assets and liabilities

Accounts receivable

(419

)

(8,998

)

Inventories

(5,594

)

(7,648

)

Prepaid expenses and other assets

(56

)

(1,140

)

Accounts payable

792

12,508

Accrued expenses and other liabilities

4,012

341

Net cash provided by operating activities

38,565

5,932

Cash flows from investing activities

Capital expenditures

(16,127

)

(8,584

)

Proceeds from sale of assets

440

83

Net cash used in investing activities

(15,687

)

(8,501

)

Cash flows from financing activities

Principal payments on long-term debt

(248,529

)

(642

)

Payments on capital leases

(1,266

)

(319

)

Net proceeds from IPO

469,621

-

Distributions to members

(26,041

)

-

Redemptions of CW Units

(216,425

)

-

Net cash used in financing activities

(22,640

)

(961

)

Effect of exchange rate changes on cash and cash equivalents

48

12

Net increase (decrease) in cash and cash equivalents

286

(3,518

)

Cash and cash equivalents

Beginning of period

7,574

8,688

End of period

$

7,860

$

5,170

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA(1)

(unaudited)

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Net income

$

26,408

$

22,814

$

4,854

Interest expense, net

2,852

5,316

4,986

Income tax expense

1,652

607

154

Depreciation and amortization

6,621

6,295

5,313

EBITDA (1)

37,533

35,032

15,307

Loss on debt extinguishment

4,305

-

-

Stock-based compensation

834

-

-

Adjusted EBITDA (1)

$

42,672

$

35,032

$

15,307

(1)

EBITDA and Adjusted EBITDA are not measures of net income as
determined by GAAP. EBITDA and Adjusted EBITDA are supplemental
non-GAAP financial measures that are used by management and external
users of the Company’s consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies. Cactus
defines EBITDA as net income excluding net interest expense, income
tax and depreciation and amortization. Cactus defines Adjusted
EBITDA as EBITDA excluding (gain) loss on debt extinguishment and
stock-based compensation.

Cactus management believes EBITDA and Adjusted EBITDA are useful
because they allow management to more effectively evaluate the
Company’s operating performance and compare the results of its
operations from period to period without regard to financing methods
or capital structure, or other items that impact comparability of
financial results from period to period. EBITDA and Adjusted EBITDA
should not be considered as alternatives to, or more meaningful
than, net income or any other measure as determined in accordance
with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA
may not be comparable to other similarly titled measures of other
companies. Cactus presents EBITDA and Adjusted EBITDA because it
believes they provide useful information regarding the factors and
trends affecting the Company’s business.

Cactus, Inc. – Supplemental Information

Depreciation and Amortization by Category

(unaudited)

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

(in thousands)

Cost of product revenue

$

776

$

812

$

817

Cost of rental revenue

3,954

3,909

3,553

Cost of field service and other revenue

1,790

1,479

837

Selling, general and administrative expenses

101

95

106

Total depreciation and amortization

$

6,621

$

6,295

$

5,313

Cactus, Inc. – Supplemental Information

Market Share(3)

(unaudited)

Three Months Ended

March 31,2018

December 31,2017

March 31,2017

Cactus U.S. onshore rigs followed

250

234

163

Baker Hughes U.S. onshore rig count quarterly average

948

900

719

Market share (3)

26.4

%

26.0

%

22.7

%

(3)

Market share represents the average number of active U.S. onshore
rigs Cactus followed (which Cactus defines as the number of active
U.S. onshore drilling rigs to which it was the primary provider of
wellhead products and corresponding services during drilling) as of
mid-month for each of the three months in the applicable quarter
divided by the Baker Hughes U.S. onshore rig count quarterly
average. Cactus believes that comparing the total number of active
U.S. onshore rigs to which it was providing its products and
services at a given time to the number of active U.S. onshore rigs
during the same period provides Cactus with a reasonable
approximation of its market share with respect to wellhead products
sold and the corresponding services it provides.